Paradyne Extends Lead in SHDSL with the Introduction of New Bonded, Extended Rate Broadband Solutions

   Extended Rate Bonded G.shdsl IP DSLAM and CPE for Business-Class
 Services Fill Need for Service Providers Looking to do More with Less

   Paradyne (NASDAQ:PDYN), a leading provider of triple play
broadband loop carriers (BLCs) and Ethernet access equipment, today
introduced the ability to deliver Ethernet services of greater than 
10 megabits per second over two copper pairs using extended rate 
G.shdsl with its new 4279 IP DSLAM and 1750 series CPE.
   The 4279 IP DSLAM and the 1750 series CPE complement Paradyne's
existing broadband triple play solutions portfolio and can be
subtended by existing Paradyne 8000 series and 12000 series IP BLCs.
The solutions optimize throughput for business class services and
provide technology standards such as extended rate G.shdsl, which
boosts SHDSL performance to approximately 5.7 Mbps per pair. Bonding
multiple pairs of copper enables even higher bandwidth capabilities,
making it the perfect solution to deliver the highly sought after 
10 megabit Ethernet service offering.
   "Paradyne will increase their presence in the Ethernet over Copper
market with their new IP DSLAM products," said Michael Howard,
principal analyst, Infonetics Research. "The Paradyne extended rate
G.shdsl products give a new option to service providers who are always
looking for ways to efficiently and cost-effectively offer higher
bandwidth Ethernet services to their copper-based customers."
   Despite the ever-growing need for bandwidth, 90 percent of today's
office buildings still do not have access to fiber. With Paradyne's
extended rate Ethernet over Copper solutions, service providers can
significantly reduce the need for trenching and installing expensive
fiber connections while capitalizing on the latest 5.7 Mbps per pair
capabilities. These solutions complement Paradyne's leading bonded
T1/E1 Ethernet solutions to create a complete high-speed offering for
business customers who don't have access to fiber.
   "With bandwidth-hungry applications, service providers are always
looking to do more with less," said Ken Hood, vice president of
product management and marketing, Paradyne. "Paradyne's extended rate
SHDSL products are another step forward in delivering Ethernet
everywhere solutions for our service provider customers. The 4279 IP
DSLAM and 1750 series CPE provide a compelling price to performance
ratio today compared with the competition."
   Already a leader in the rapidly growing Ethernet over Copper
market, Paradyne's 1750 series CPE supports the latest in SHDSL
standards with extended rate support. The 1750 series CPE is certified
interoperable with Paradyne's new 4279 IP DSLAM for multipoint
applications, and in addition the CPE can also operate in back-to-back
mode for point-to-point applications at symmetric bandwidths and bond
up to four pairs for greater bandwidth.
   The IP DSLAM market and the Ethernet in the First Mile market
continue to expand as service providers offer a wide array of
bandwidth-intensive services and applications. Infonetics Research
reported in February 2005 that worldwide total IP DSLAM revenue
approached $700 million in 2004, up 58 percent from 2003, and is
projected to make up 69 percent of total DSLAM revenue by 2008.

   About Paradyne

   Paradyne provides a broad family of IP-based Broadband Access
solutions, including BLCs, MSANs, DSLAMs, Ethernet in the First Mile
bonded solutions, IADs, and CPE. Paradyne's products support both
residential triple play solutions and business class bonded G.shdsl,
ADSL2+, and T1/E1 solutions for LAN extension and cell site data
backhaul applications.
   Paradyne's solutions are designed to enhance carrier revenue
streams with full support for Multimedia Traffic Management (MTM) and
to lower carrier operational expenses through Operational Intelligence
(OpIQ).
   More information may be obtained by visiting
http://www.paradyne.com or by calling [phone].

   Information about Forward-Looking Statements:

   This press release contains forward-looking statements that
involve a number of risks and uncertainties. These forward-looking
statements are made pursuant to the "safe-harbor" provisions of the
Private Securities Litigation Reform Act of 1995 and are made based on
management's current expectations and beliefs as well as on
assumptions made by, and information currently available to,
management. Among the factors that could cause actual future events to
differ materially include: the uncertainty regarding the acceptance of
new telecommunications services based on DSL technology; reduction or
discontinuation of purchase of our products by NSPs; the failure of
NSPs to incorporate our products into their infrastructure; the
possibility that Paradyne's competitors may develop competing products
that are superior in terms of quality, cost, or both. For a detailed
discussion of other risk factors that could affect Paradyne's
business, please refer to the risks identified in Paradyne's Current
Report on Form 10-K, dated March 16, 2005 and in Paradyne's other
filings with the Securities and Exchange Commission.

   Editors Note: Paradyne and the Paradyne Logo are registered
trademarks of Paradyne Corporation.